Paytm Payments Services Limited (PPSL), a subsidiary of Vijay Shekhar Sharma-led Paytm, is undergoing a leadership shuffle and workforce restructuring.

Sources told The Head and Tale that Paytm Payments Services CEO Nakul Jain is on his way out.

“Jain is currently serving his notice,” a source said.  

Jain – a former Standard Chartered Bank executive – had joined as Paytm Payments Services CEO in 2022.

Several sources confirmed that Jain is planning to launch his own wealth management startup.

In addition, around 20-25 employees have been moved to the parent company, One97 Communications Limited (OCL), while internal chatter suggests about 25 employees may be soon asked to leave, sources informed.

These changes are expected to bring PPSL’s workforce down to approximately 150 employees.

“Paytm is also planning to merge its online and offline business,” one of the sources informed. And, if sources are to be believed Tejinder Singh, who is currently the chief business officer, will lead the merged business.

In a response to The Head and Tale query, Paytm spokesperson said, "Our subsidiary, Paytm Payments Services Limited (PPSL), has not communicated any such developments. Nakul Jain continues to be the CEO of the Company and PPSL remains fully committed to delivering payment aggregation services to its existing online merchants."

“This is false,” Nakul Jain said, denying the development.

PPSL is yet to secure its final payment aggregator (PA) license from the Reserve Bank of India (RBI). The application status remains “under process” on the RBI website.

According to a source, the Noida-based fintech has “re-applied for the license this month after addressing RBI queries.”

For more than two years, PPSL has been barred from onboarding new merchants, impacting its revenue. In the financial year ending March 2023, the payments aggregator business accounted for a quarter of Paytm’s consolidated revenue.

One of the hurdles in the approval process has been the scrutiny over Chinese fintech giant Ant Group’s 9.88% stake in Paytm. This stake raised concerns with Indian regulators, delaying government clearances.

In August 2024, PPSL received approval from the Ministry of Finance to invest an additional $6 million (Rs 50 crore) into its payment services business. The move was aimed at meeting compliance requirements and bolstering its case for the PA license.

PPSL continues to navigate the regulatory landscape while addressing operational and organizational shifts. The outcome of its reapplication for the payment aggregator license will be crucial for its next steps.

Soon after The Head and Tale news was published, Paytm, in an exchange filing, confirmed the development, saying, "We wish to inform you that Paytm Payments Services Limited (“PPSL”) our wholly owned material subsidiary company has informed us on January 27, 2025 at 10.50 p.m. (IST) that Nakul Jain, Managing Director and Chief Executive Officer (CEO) of PPSL, has resigned from his position w.e.f. close of business hours on March 31, 2025 or an earlier mutually agreed date. Mr. Jain has decided to pursue an entrepreneurial journey, which has led him to this decision. PPSL is actively working on identifying a suitable replacement and will announce the new appointment in due course. In the interim, PPSL remains focused on driving its growth and continuing to meet its business objectives."